# In the matter of Sunil Hitech Engineers Limited

> NCLT judgment dated 2024-02-21. Citation: TCN-2024-NCLT-02501. The case involves an appeal filed by Macawber Beekay Private Limited under Section 42 of the…

- **Court:** NCLT
- **Order date:** 21 Feb 2024
- **Citation:** TCN-2024-NCLT-02501
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sunil-hitech-engineers-limited-ab4eb283

## Summary

### Background

The case involves an appeal filed by Macawber Beekay Private Limited under Section 42 of the Insolvency and Bankruptcy Code, 2016, as a claimant of the Corporate Debtor, Sunil Hitech Engineers Limited. Macawber Beekay filed a claim of Rs. 6,99,18,318, which was rejected by the Resolution Professional (RP). The RP also invoked bank guarantees provided by Macawber Beekay to Sunil Hitech. Macawber Beekay challenged the rejection of its claim and the invocation of the bank guarantees. The dispute arises from a contract related to a thermal power project for MAHAGENCO, where Macawber Beekay was a sub-contractor to Sunil Hitech. The Liquidator of Sunil Hitech also rejected the claim, leading to the present appeal.

## Facts

In 2009, MAHAGENCO invited tenders for a thermal power project. Sunil Hitech Engineers Limited (SHEL) won the bid and entered into a contract with MAHAGENCO in 2011. Macawber Beekay Private Limited (MBPL) was a sub-contractor to SHEL for the Ash Handling Plant and Mill Reject Handling System. MBPL furnished bank guarantees to SHEL as per the contract terms. Disputes arose between MBPL and SHEL regarding the execution of the project. SHEL terminated the contract, citing MBPL's non-compliance. SHEL invoked the bank guarantees provided by MBPL. MBPL filed a claim with the Resolution Professional (RP) during SHEL's corporate insolvency resolution process (CIRP). The RP rejected MBPL's claim and invoked the bank guarantees. MBPL filed an application under Section 42 of the

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## Issues and analysis

### Issue 1: Whether the dispute relates to the determination of liquidated damages under a contract between the …

**Ratio:** The Supreme Court in Tata Consultancy Services v. Vishal Ghisulal Jain, Resolution

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**Reasoning:** The court reasoned that the dispute involves complex contractual issues and the

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**Interpretation:** The interpretation of the Supreme Court's ruling is that the NCLT's

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**Application:** In this case, the dispute over liquidated damages arises from an alleged breach

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## Parties

- **Judges:** V.G. B…; Prabhat…
- **Appellants:** Macawber Beekay…
- **Respondents:** Sunil Hitech…

## Timeline

- **2009-08-31 — Tender Invi…**: MAHAGENCO invited tenders…
- **2010-10-03 — Pre-Bid Consortium…**: The Applicant, Zuberi Engineering Company, Driplex Water Engineering Ltd. and the Company…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 42 — Appeal against the decision of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-42)

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